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Wednesday, October 10, 2007

The DOW gave us all quite a scare today, dropping to just below support before reversing and closing with a big, rather than gargantuan, loss. Earnings season is beginning, and I this we are starting to see some cracks in the cement.

There were quite a few breakouts today, almost all in the Nasdaq. The chart above is a 5 day 10 minute chart, the Dow in red, the Nasdaq 100 in blue. Quite a divergence developing here.

Alcoa was the first to report yesterday, and boy did it suck. It still rallied (stock buyback), but there was a major bailout today.

CAT 's last earnings, in July, sucked as well, leading to an end of it's uptrend. I posted on this before here. Those who bought the dip just got a chance to break even yesterday, I hope they took advantage of it.

Boeing is getting creamed after making a nice double top. Aren't these the kind of companies that kick ass when the dollar goes into the toilet? Hmm, it doesn't seem to be happening.

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About Me

I am not a financial professional, just a guy that trades my own account.
I am also not a musical professional, just a guy that makes music on the computer. Thus, two blogs, one trading and on musical.
And, no, the picture is not me, it is the late, great John Belushi, one of the inspirations for these blogs.

About ThIs Blog

This blog is focused on technical analysis of stocks and markets, putting heavy emphasis on chart analysis. My trading style is derived primarily from my mentor, William "Yoda" O'Neil, and the focus here is on leading and breakout stocks, but all forms of trading are covered to some extent. Economic and political news that effects the market are also topics here, and the blog may occasionally become a platform for my political and philosophical ranting. I keep several spreadsheets on Google docs which track various aspects of the market and readers are welcome to vies and comment on them.

Google Docs Spreadsheets

There are several spreadsheet that I maintain on Google docs to track various watchlists and trends in the market.

1. The earnings list - a group of small and micro cap, low float stocks that have exhibited recent rapid earnings growth. They are modeled along the lines of William O'Neil's CAN SLIM system, but limited to small cap, highly volatile stocks.

2. The relative strength list - a group of stocks which are near 52 week highs and have shown an increase in average daily volume. The list is limited to the top 200 stocks according to my methodology, which will be detailed on one of the pages of the spreadsheet.